I am not much of a vid editor but I thought I would let you know that, that setup will do the job. The only thing that might hold you back is the graphics and the hdd. Laptop hdd's are always slow though. I would try searching on pcworld downloads section for some freeware before spending money. You would be suprised what you could get for free!!
PCworld video tools section
http://www.pcworld.com/browse/1493/topic.html?page=1
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CPU - AMD Athlon 64x2 5200+ @ 2.6ghz
Ram - 2GB Stock clock
HD - 320gb seagate & Samsung 750gb 32mb cache
GPU - XFX 8600GT XXX Zalman @ 680 or 700mhz
PSU - Ultra X-finity 600watt
OS - Vista Home Premium(32) & XP Pro and Vista
Audio - JVC 460watts
Control - Logitech G25 Wheel & Logitech Rumblepad 2
Games - GTR2 and LFS
-- Race Sim's for Life --
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